Extra Space Storage Announces Deal to Buy 20 Self Storage Properties

Extra Space Storage Inc. (the "Company")

announced today that its operating partnership subsidiary, Extra Space Storage LP (the "Operating Partnership"), entered into a Contribution Agreement with various companies affiliated with All Aboard Mini Storage and Lance D. Alworth, as principal (the "Contributors"), to acquire 20 self-storage facilities (the "Properties").  The transaction is currently expected to close by the end of the third quarter of 2013, subject to due diligence and other customary closing conditions. The Properties are located in California and include approximately 14,800 self storage units, containing approximately 1.5 million square feet of net rentable space.  The aggregate consideration for the Properties is valued at approximately $196.0 million, excluding transaction costs, including taking the Properties subject to approximately $100.1 million of existing loans (which will be prepaid by the Company after the Properties are conveyed to the Company).  The Company will pay an additional $10.1 million related to the defeasance and prepayment costs associated with these loans. The Company will also issue approximately $33.6 million of newly designated Series B Redeemable Preferred Units (the "Series B Preferred Units") and approximately $62.3 million of common Operating Partnership units (the "Common Units") to the Contributors.     The terms of the Series B Preferred Units will be governed by the Operating Partnership's Third Amended and Restated Agreement of Limited Partnership which the Company expects to enter into upon the closing of the transaction.  With the exception of the existing Series A Preferred Units, the Series B Preferred Units will have priority over all other partnership interests with respect to distributions and liquidation.  The Series B Preferred Units will bear a fixed priority return of 6.0% and have a total liquidation value of $33.6 million ($25.00 per unit), and the newly issued Common Units will receive distributions and have a liquidation value equal to that of the existing Common Units.  In addition, the Series B Preferred Units and Common Units will be redeemable at the option of the Contributors after a period of one year following the closing, which redemption obligation may be satisfied at the option of the Company in cash or shares of its common stock.